Call me crazy but I feel my spidey sense telling me to run from this one until the seller can come back to reality. As mentioned above, the target is an old economy, established business with a 2020 top line of $3.8M and $1.5M EBITDA (no COVID-19 impact from###-###-#### and he swears that the company is worth every penny of a $7.5M price tag if not more.
I have tried to communicate as clearly and nicely as possible that while he may whole-heartedly believe the company is worth 5x EBITDA, the market most likely has a very different opinion.
What are some talking points or some messaging that I can use to go back to the seller with to better set expectations?
$3.8M Rev and $1.5M EBITDA "Old Economy" Owner Expecting $7.5M Price
by a searcher
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At the end of day, if the gap is too big, then there is no point in you wasting your time but if you think you are a turn or two of EBITDA away, I believe there are ways to get there.